LNG in World Markets: Thailand Secures New Term LNG Imports

This current feature was extracted from the latest edition of Poten’s LNG in World Markets, a monthly service published on August 1, 2022.

Thailand has signed its first LNG sale and purchase agreement (SPA) in close to six years. State-run importer PTT inked a deal with Cheniere to offtake 1 MMt/y of LNG over 20 years starting in 2026.

PTT will take the LNG volumes on both FOB and DES terms. This will be the first time the firm is taking term supply on FOB basis – and its first direct offtake from a US LNG producer via a long-term contract. This is also the first Cheniere term contract that sells on a FOB and DES mix, according to Poten data.

Around 60% of the contracted volumes will be sold on FOB terms and the remaining 40% on DES, sources said. Cheniere will sell the LNG to PTT entirely on FOB, or entirely on DES, in any given year, due to reasons related to shipping availability and schedule. The FOB years are more concentrated in the later part of the contract.

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